Legacy Permit Proposal

This proposal is aimed at the improvement of the taxicab industry in Austin, Texas.
Taxi Driver Association of Austin

Legacy/Mobile Permit Proposal:

"Introduction:"

The following information describes a proposed change in the distribution of available permits to operate a vehicle as a taxicab ("permit") in the City of Austin Texas. This proposal is intended to improve driver income and independence and thereby attract and maintain experienced and quality drivers in the taxi industry.

It is the position of the Taxi Drivers Association Austin (hereinafter referred to as the "TDAA") that the current business model creates an unjust and inequitable system in Austin.

City of Austin taxicab drivers work excessive hours and average small hourly earnings.

Taxi drivers who own a vehicle pay approximately $300 a week to a franchise to have a permit, vehicle liability insurance, and dispatch service whether they use it or not. Drivers pay $15,600 a year for use of the permit that franchises obtain for only $400. Over a seven year life of the vehicle, drivers pay the franchise $109,200.

Taxicab franchises have little incentive to compete for the services of drivers because the franchise has control of the permit. Consequently, drivers have no insurance coverage, franchises may cancel a driver’s contract for any whim, and terminal fees continually rise.

The city of Austin has lost control of this public utility and lost income by transferring the value of the permit to the franchises at a bargain price.

The city has lost sales tax revenue that it would recover if drivers had $15,000 a year more money in their pockets to spend locally.